Tata Capital to Invest ₹650 Crore in Housing Finance Subsidiary
Tata Capital Ltd has announced a ₹650 crore investment in its housing finance arm, Tata Capital Housing Finance Ltd (TCHFL). The investment will be made through a rights issue, which was approved by the TCHFL board on Wednesday. The funds will be provided in one or more installments to support the subsidiary’s ongoing growth.
Strong Growth and Financial Health
The housing finance division has shown impressive performance recently. Key highlights from its latest reports include:
- Asset Growth: Assets under management (AUM) grew by 30% year-on-year, reaching ₹81,600 crore.
- Profitability: The arm saw a 25% jump in profit after tax.
- Efficiency: The cost-to-income ratio improved significantly, dropping to 31.8% in the third quarter of FY26.
- Loan Quality: Asset quality remains strong, with net non-performing assets (NPA) at just 0.4% and very low credit costs of 0.1%.
Leadership Outlook
Rajiv Sabharwal, MD and CEO of Tata Capital, expressed confidence in the company’s trajectory. He noted that TCHFL is now one of the top-performing housing finance companies in India, maintaining a stable return on assets (ROA) of 2.4% throughout the 2026 fiscal year. He attributed this success to disciplined operations and effective growth strategies.
Market Reaction
Following the announcement, Tata Capital shares ended the day 1% lower at ₹334.15 on the BSE. This decline occurred even as the broader Sensex remained flat. Since its stock market debut in October 2025, Tata Capital’s share price has seen a modest overall increase of approximately 1%.
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